by: Barry Ward, Leader, Production Business Management- Department of Agricultural, Environmental and Development Economics (AEDE)
Ohio cropland varies significantly in its production capabilities and consequently cropland values and cash rents vary widely throughout the state. Generally speaking, western Ohio cropland values and cash rents differ from much of southern and eastern Ohio cropland values and cash rents. This is due to a number of factors including land productivity and potential crop return, the variability of those crop returns, field size and shape, drainage, population density, ease of access, market access, local market prices, potential for wildlife damage, field perimeter characteristics and competition for rented cropland in a region.
Western Ohio cropland values and cash rental rates are projected to decrease in 2016 due in large part to continued low to negative profit margin prospects for Ohio’s three major row crops (corn, soybeans and wheat). According to the Western Ohio Cropland Values and Cash Rents Survey, bare cropland values are expected to decrease from 4.8% to 11.1% in 2016 depending on the region and land class. Cash rents are expected to decrease from 5.6% to 7.6% depending on the region and land class.
The “Western Ohio Cropland Values and Cash Rents” study was conducted from February through April in 2016. The study is an opinion based survey designed to poll professionals with a knowledge of Ohio’s cropland values and rental rates. Surveyed groups include professional farm managers, rural appraisers, agricultural lenders, OSU Extension educators, Farm Service Agency personnel, landowners and farmers.
One hundred twenty six surveys were completed, analyzed and summarized. Respondents were asked to give responses based on 3 quality classes of land in their area: “average” land, “top” land and “poor” land. They were asked to estimate long term average (5 years) corn and soybean yields for each land class based on typical farming practices. Survey respondents were asked to estimate current bare cropland values and cash rents negotiated in the current or recent year for each land class. Survey results are summarized for western Ohio. Regional summaries (subsets of western Ohio) are presented for northwest Ohio and southwest Ohio.
When interpreting this summary of survey results users should be aware that results will differ widely within a region and it will be useful to consider the ranges that are listed in the tables as one considers how individual parcels may compare. It is also important to stress that land in a given region does not fall neatly into thirds of each land quality class (average, top and poor). There will likely be little acreage in a given county or region that will fall into the “top” land category. Top land will typically be large tracts of land with highly productive soils. “Average” land will typically make up the majority of land in a given region or county while “poor” land will tend to be land with lower productivity soils, steep slopes, poor drainage, or come in smaller tracts (or a combination of these).
To access the complete summary go to:
http://aede.osu.edu/about-us/publications/western-ohio-cropland-values-and-cash-rents-2015-16